Well, I hate to say it but this has been a log time coming. With lots of rumors around current Electronic Arts CEO John Riccitiello’s ousting making the rounds online for the past few months it may as well be called one of the worst kept secrets of the games industry.
Today the current EA CEO John Riccitiello has stepped down from his post as Chief Executive officer at the publisher effective March 30th. Riccitiello issued a resignation letter to the board offering to step down and let someone new take EA into the next stage of its evolution in light of missing several financial and operating goals this past year.
Riccitiello is someone that knows EA well and has served the company as COO and CEO for many, many years. For now Larry Probst who is now the Executive Chairman of EA to resume the day to day operations with John Riccitiello staying for 2 more weeks in the management transition.
Larry is only a transitional leader for EA until a new and permanent CEO has been found and hired. You can read the full resignation letter below:
March 17, 2013
Mr. Larry Probst
Chairman Electronic ArtsDear Larry,
I hereby offer my resignation as CEO of Electronic Arts effective with the end of our Fiscal Year 13 on March 30, 2013.
This is a tough decision, but it all comes down to accountability. The progress EA has made on transitioning to digital games and services is something I’m extremely proud of. However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA’s shareholders and employees expect better and I am accountable for the miss.
I have been at the helm as EA’s CEO for six years and served as COO for nearly seven years starting in 1997. I know this company well, and I care deeply about its future success. I leave knowing EA is a great company, with an enormously talented group of leaders and the strongest slate of games in the industry. I could not be more proud of our company’s games, from Battlefield and FIFA, to The Simpsons: Tapped Out and Real Racing 3. We have built many great franchises that will serve the company well in FY14 and beyond. In particular, I am confident that the investments we have made in games for next-generation consoles will put EA in a strong leadership position for many years ahead.
In offering my resignation, my goal is to allow the talented leaders at EA a clean start on FY14. I look forward to working with you in the coming weeks on an effective leadership transition. I’m extremely honored to have led this company and proud to have worked with all the great people at Electronic Arts.
Sincerely,
John Riccitiello
With that said, when a CEO resigns it almost never means he left on his own, typically the shareholder and board pressures become too much and the executive leadership is forced out the door. Of course we don’t know the exact circumstances in this situation but the PR spin is not to be underestimated.
